Surat Peoples’ Co-op Bank nurses ambitious plans in 2018

“It is quite encouraging that we will soon achieve the Multi-State Cooperative Bank status in the financial year 2017-18. With the merger of Mumbai based Sun Mitra Sahakari Bank Maryadit, the multi-state cooperative bank status would materialize”, says Mukesh N Gajjar Chairman of Gujarat based Surat People’s Cooperative Bank.

Gajjar said “We have covered all the parameters for achieving the Multi-State Cooperative Bank Status and also got the permission from Reserve Bank of India to expand our business activities in other states of India. With a crisis-ridden bank in Maharashtra merging with our bank, we will have our first branch in Maharashtra”, he said in an exclusive interview with this correspondent in Surat.

Gajjar said “We have targeted to make Rs 250 crore transactions through cashless till the end of this financial year and about Rs 110 crore payments have been done so far.”

Highlighting his 2020 vision, Chairman of the Bank said “we have decided to go in Forex and also want to establish our currency chest. After getting the Multi State Status, there is wide scope for foreign exchange business in Mumbai.

Recalling the history of the bank Gajjar said “the bank was established under the leadership of Vrindavan Rao Jadav in 1922 with 134 shareholders with a share capital of 9,815 and a deposit of about 51 thousand. Presently, 87,480 members are associated with the bank and having deposits to the tune of Rs 36 thousand crore. The bank has earned a net profit of Rs 33 crore and disbursed 15 percent dividend to its members. The gross NPA of the bank is 2.21%, he added.

Significantly, the bank has also made contribution to Corporate Social Responsibility (CSR): launching “Shareholder Donate Policy” with the aim to provide a cheque of Rs one lakh to members at the time of accidental death, said Chairman proudly.

With regard to technology, the bank Chairman said “the bank has installed Core Banking Solution and there are 15 on-site ATMs. We have distributed about 50,000 Rupay debit cards so far and having 29 branches across Gujarat. The bank has also launched SPB Mobile Banking application.

Meanwhile, Gajjar has demanded that Government should give them support on the lines of private and nationalized banks and allow us to get funds from the market as other banks do. They want relief from dual control of Registrar of Cooperative Societies and Reserve Bank of India”, said Gajjar who is also heading the South Gujarat Cooperative Bank Association.

The implementation of new tax good and service tax has affected the business growth of the bank because the service tax rose to as high as 18 percent, said the Chairman.